Friday, May 14, 2010

Millions of jobs that were cut won't likely return - Yahoo! Finance

Yes, but how will that affect our country? With a permanent 10% unemployment, there can only be so much growth... then, problems from millions of ignored people with no money and no hope. Sounds like Greece.

We'll file this under "Hope and Change" - well, you got the change. What will the hope do now?
Millions of jobs that were cut won't likely return - Yahoo! Finance

More than one-third of chief financial officers at 620 big companies surveyed in March by Duke University and CFO magazine said they didn't expect to restore their payrolls to pre-recession levels for at least three years. Nearly all cited higher productivity and tepid consumer spending.

"Companies have just figured out, 'We didn't want to fire people ... but now that they're gone, we've realized that we can get by without them,'" said John Graham, a Duke finance professor who directed the survey.

Productivity grew at an annual rate of 6.3 percent in the year ending in March, the Labor Department said this month. It was the largest increase in 48 years, though most economists think that pace isn't sustainable.

In the long run, more productive workers raise standards of living: Companies can pay more without inflating prices. But in the short run, high productivity delays hiring.

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